Wednesday, July 31, 2019

Russian Logistics Group Launches Rail Freight Korea to Europe Service

Trans-Siberian Multimodal Route Starts Operations
Shipping News Feature
RUSSIA – SOUTH KOREA – EUROPE – Russian Railways Logistics (RZD), together with the FESCO Transport Group is expanding its network with the launch of a transit route from the Republic of Korea to Europe. These initiatives are part of the development of the Trans-Siberian LandBridge Accelerated Delivery Service. The initial inter-modal chain of Trans-Siberian Landbridge was organised by way of the Port of Yokohama to Vladivostok Port, then via the Trans-Siberian railway into Europe.

In the case of the new service, the first container was shipped from Busan on June 25, from where FESCO Korea Express delivered it by sea to the Vladivostok Commercial Sea Port, which is part of the FESCO Group. The container then went by the Trans-Siberian Railway and after being transhipped from the Russian broad gauge system of 1520mm to 1435mm European narrow gauge rolling stock at Brest station in Belarus, it was delivered to the railway station at Brzeg Dolny in Poland. From there it was delivered to the client’s warehouse in Wroclaw, also in Poland, by road. The total transit time was 21 days, twice as fast as comparable shipments by sea through the Suez Canal.

As part of the joint transit product, FESCO provides shipping both by sea and overland, port handling and a container fleet, while Russian Railways is responsible for organising the rail transport. It is intended that freight of various types, including automotive components and equipment, will be delivered from the Republic of Korea to Europe in the future. Alexander Isurin, the President of FESCO, said:

“Europe is one of the biggest consumer markets in the world, there are located many high value-added product manufacturers with components and parts which are delivered from the countries of Asia-Pacific. Delivery time is significant for them, and given the logistics, the route through the Russian Far East is the most attractive in terms of saving time and managing sustainable deliveries,”

At the end of May 2019, the two companies launched the joint service called the ‘Trans-Siberian LandBridge’ and at the same time shipped a test container from the Japanese port of Yokohama to Wroclaw in Poland. Transit time by rail from Vladivostok to Brest for this shipment was just 11 days with an overall transit which took 19 days, around 26 days faster than the entirely ocean borne routing via Suez..

On the basis of test shipments such as this, the parties developed the multimodal options to make possible a service for shipping goods from the countries of the Asia-Pacific region to Europe, via the Far East and Trans-Siberian, available by the end this year. Vyacheslav Valentik, the Director General of RZD Logistics, commented:

“The test delivery from Japan to Europe by Trans-Siberian LandBridge service demonstrated a viability of the route through the Commercial Port of Vladivostok and the Trans-Siberian railway. Clients made sure of its safety and quality, and saw the rail delivery is faster than deep sea transportation. Now we offer to our clients from the Republic of Korea [the opportunity] to assess the economic efficiency of the transit service. In fact, the more cargoes transported by Trans-Siberian LandBridge, the more affordable the service is to the clients.”